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You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and
You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) a. Pay $570 per month for 25 months and an additional $10, 000 at the end of 25 months. The dealer is charging an annual interest rate of 24%. b. Make a one-time payment of $17, 223, due when you purchase the car. a. Determine how much cash the dealer would charge in option (a). (Round your final answer to nearest whole dollar.) b. In present value terms, which offer is clearly a better deal? Option a Option b The present values of the options are nearly the same
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